Ovintiv (OVV) AI Stock Analysis

• Market Cap: $11.03B
• Dividend Yield: 2.91%
• Average Volume (3M): 3.36M
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.82
• Revenue Growth: -12.92%
• EPS Growth: -68.16%
• Country: US
• Employees: 1,623
• Sector: Energy
• Sector Strength: 60
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.02
• Shares Outstanding: 257,037,320
• 10 Day Avg. Volume: 3,956,326
• 30 Day Avg. Volume: 3,356,298
• PEG Ratio: -4.92
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.05
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: $52.37
• Price Target Upside: 27.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 80 Outperform
• Price Target: $49.00 ▲(18.99%Upside)

Ovintiv's strong financial performance, technical momentum, and positive earnings call contribute significantly to its overall score. While valuation is moderate, the company's strategic initiatives and operational efficiencies provide a robust outlook, securing a solid overall stock score.

Positive Factors

Financial Performance

Ovintiv's 2Q showcased attractive execution with most relevant guidance metrics raised.

Free Cash Flow

OVV continues to highlight an underappreciated FCF yield/EV of 11% in 2025 and 2026.

Operational Leadership

Ovintiv made a strategic decision to refocus on its Canadian E&P heritage, refining its identity with operational leadership in the Midland and Montney plays.

Negative Factors

Market Perception

LNG Canada is expected to reshape perceptions of AECO, potentially challenging the notion that the basin is un-investable.

Valuation

Ovintiv trades at a steep discount compared to Permian pure plays despite having a lower dividend breakeven.

Ovintiv Business Overview & Revenue Model

Company Description

Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. It operates through USA Operations, Canadian Operations, and Market Optimization segments. The company's principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. Its other upstream assets comprise Bakken in North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia, and Wheatland in southern Alberta. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.

How the Company Makes Money

Ovintiv Inc. generates revenue primarily through the extraction and sale of oil, natural gas, and natural gas liquids. The company monetizes its extensive resource base by producing hydrocarbons and selling them to various markets, including local and international buyers. Ovintiv's revenue streams are influenced by commodity prices, production volumes, and operational efficiencies. The company also engages in hedging strategies to manage price volatility and ensure stable cash flows. Partnerships with midstream companies for transportation and processing, as well as joint ventures for exploration and development, play a significant role in optimizing Ovintiv's operations and expanding its market reach.

Ovintiv Financial Statement Overview

Summary

Ovintiv demonstrates solid financial health with strong cash flow generation and a well-managed balance sheet. However, the decline in net profit margin and ROE, along with negative revenue growth, are concerns that need monitoring.

Income Statement

Ovintiv's income statement shows a decent level of profitability with a gross profit margin of 48.6% (TTM), suggesting efficient cost management. The net profit margin of 6.9% for TTM indicates a reasonable level of profitability, though it has decreased from 12.3% in the previous year. Revenue growth has been negative, with a decrease of 4.3% from the previous year, highlighting challenges in maintaining revenue levels. However, the EBIT and EBITDA margins are solid at 10.1% and 36.5% respectively, pointing to strong operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position, with a debt-to-equity ratio of 0.67, which is manageable. The equity ratio is 51.4%, indicating a well-capitalized structure. However, the return on equity (ROE) for TTM is modest at 6.2%, down from 10.9% the previous year, suggesting a decline in generating returns for shareholders.

Cash Flow

Cash flow metrics are strong, with a free cash flow growth rate of 13% from the previous year, indicating effective cash generation. The operating cash flow to net income ratio is high at 6.25, showing robust cash earnings. The free cash flow to net income ratio of 2.55 reflects substantial free cash flow relative to net income, enhancing financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.15B	10.66B	12.46B	8.66B	6.09B
Gross Profit	4.98B	4.96B	7.30B	4.22B	2.71B
EBITDA	4.07B	4.71B	5.00B	2.79B	-3.50B
Net Income	1.13B	2.08B	3.64B	1.42B	-6.10B
Balance Sheet
Total Assets	19.25B	19.99B	15.06B	14.05B	14.47B
Cash, Cash Equivalents and Short-Term Investments	42.00M	3.00M	5.00M	195.00M	10.00M
Total Debt	6.29B	6.68B	4.49B	5.78B	8.01B
Total Liabilities	8.92B	9.62B	7.37B	8.98B	10.63B
Stockholders Equity	10.33B	10.37B	7.69B	5.07B	3.84B
Cash Flow
Free Cash Flow	1.42B	1.42B	2.04B	1.61B	159.00M
Operating Cash Flow	3.72B	4.17B	3.87B	3.13B	1.90B
Investing Cash Flow	-2.46B	-5.52B	-1.79B	-525.00M	-1.86B
Financing Cash Flow	-1.23B	1.36B	-2.27B	-2.42B	-206.00M

Ovintiv Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OVV, the sentiment is Positive. The current price of 41.18 is above the 20-day moving average (MA) of 40.67, above the 50-day MA of 39.25, and above the 200-day MA of 39.80, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 74.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OVV.

Ovintiv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTDR	83 Outperform	$6.52B	7.68	17.07%	2.16%	16.20%	-12.42%
PR	82 Outperform	$11.53B	8.90	14.35%	4.66%	37.00%	44.18%
OVV	80 Outperform	$11.03B	18.98	5.75%	2.91%	-12.92%	-68.16%
APA	76 Outperform	$6.96B	6.98	25.34%	5.18%	26.76%	-69.10%
RRC	68 Neutral	$8.69B	18.37	11.99%	0.93%	19.95%	0.94%
Sector *	67 Neutral	$15.32B	10.21	6.62%	5.48%	4.82%	-57.74%
AR	67 Neutral	$10.79B	24.33	6.31%	―	6.67%	240.70%

Ovintiv Corporate Events

Ovintiv Reports Q2 2025 Results, Reduces Net Debt

On July 24, 2025, Ovintiv Inc. announced its second quarter 2025 financial and operating results, highlighting a reduction in net debt by $217 million and an increase in full-year production guidance. The company generated $1,013 million in cash from operating activities and $392 million in free cash flow after capital expenditures. Ovintiv also declared a quarterly dividend of $0.30 per share, payable on September 29, 2025. The company remains committed to returning value to shareholders through dividends and share buybacks, having returned $223 million in the second quarter. Additionally, Ovintiv lowered its full-year capital guidance while increasing its production outlook, reflecting strong well performance and enhanced capital efficiency.

The most recent analyst rating on (OVV) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Ovintiv stock, see the OVV Stock Forecast page.

Ovintiv Shares Investor Presentation on Website

On July 8, 2025, Ovintiv Inc. shared a presentation on its website in conjunction with an investor field tour. The presentation is not considered filed under the Securities Exchange Act of 1934 and is not subject to its liabilities, nor is it incorporated by reference under the Securities Act of 1933 unless specifically stated.

The most recent analyst rating on (OVV) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Ovintiv stock, see the OVV Stock Forecast page.

Ovintiv Reports Q1 Loss Amidst Strategic Moves

On May 6, 2025, Ovintiv announced its first quarter financial results, highlighting a net loss of $159 million due to a non-cash ceiling test impairment, but also reported strong cash flow and production figures. The company completed a significant acquisition and divestiture, resumed share buybacks, and declared a quarterly dividend, emphasizing its commitment to shareholder returns and financial stability. Ovintiv also released its 2024 Sustainability Report, showcasing substantial reductions in greenhouse gas emissions and methane intensity, along with social and governance achievements.

Ovintiv Shareholders Approve Key Governance Decisions

On May 1, 2025, Ovintiv Inc. held its annual shareholder meeting where several key decisions were made. Shareholders approved the Third Amendment to the Omnibus Incentive Plan, elected directors, and ratified PricewaterhouseCoopers LLP as independent auditors. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.